Teaching German

Business

Germany's Air Berlin announces job cuts

Germany's second-largest carrier, Air Berlin, has said it would cut about one-tenth of its workforce to become profitable again. The airline is in the middle of a restructuring program to reduce overall costs.

Germany's Air Berlin announced on Tuesday it would cut 900 jobs by the end of 2014 to help make the struggling carrier profitable again.

Currently, the nation's second-largest airline employs 9,300 people, meaning the planned layoffs would affect about every tenth worker in the company. Air Berlin said the workforce reduction would be part of its current austerity program called "Turbine".

The carrier stated that it intended to save some 400 million euros ($534 million) over the next two years in a bid to enhance profitability in a fiercely contested market.

Management reshuffle

Air Berlin has been struggling for years to get on top of spiraling operating costs and has recently allowed itself some financial leeway by bringing on board one of its rivals, Etihad Airways.

Former Air Berlin Chief Executive, Hartmut Mehdorn, threw in the towel last week after desperately trying to get the carrier back on track.

His successor, Wolfgang Prock-Schauer, had only joined the company in October of last year and was in charge of the airline's strategy and planning division.